The federal government is moving to overhaul agricultural insurance and cooperative financing structures in what officials describe as a major step toward strengthening food security and economic stability.
The reforms were discussed on Monday in Abuja during a meeting between Doris Uzoka-Anite, minister of state for finance and Aliyu Sabi Abdullahi, minister of state for agriculture, according to a statement from the finance ministry.
The talks centered on recapitalising and reforming the Nigerian Agricultural Insurance Corporation (NAIC) and advancing the government’s Renewed Hope Cooperative Reform Programme.
Uzoka-Anite said agricultural insurance is central to protecting food production, particularly for smallholder farmers who account for the bulk of Nigeria’s output. Years of climate shocks, insecurity and limited access to credit have left farmers exposed to significant risks, contributing to food inflation and supply instability.
“Agricultural risk mitigation is not merely a sectoral reform but an economic stabilizer with significant GDP impact,” Uzoka-Anite said. “We stand ready to support and look forward to reviewing the detailed proposal for coordinated fiscal and regulatory action.”
The proposed overhaul comes as food prices begin to ease, although broader inflationary pressures — which have significantly eroded household purchasing power — remain in double digits.
Strengthening NAIC within the framework of the Nigerian Insurance Industry Reform Act is expected to improve its financial sustainability and expand coverage, the ministry said.
Agricultural insurance penetration in Nigeria remains low compared with peer economies, limiting farmers’ ability to secure financing and recover from crop losses.
By recapitalising NAIC and aligning it with updated regulatory standards, the government aims to crowd in private capital and improve confidence in the sector.
The Renewed Hope Cooperative Reform Programme is also designed to modernise cooperative societies, improve governance and expand access to affordable financing for rural producers. Officials say better-structured cooperatives could enhance aggregation, lower transaction costs and strengthen value chains.
“These strategic reforms underscore Nigeria’s commitment to transforming agriculture into a resilient, market-driven sector, boosting food security, and driving inclusive economic growth,” Uzoka-Anite said.
While no financial details or timelines were disclosed, the initiative signals a broader push by the government to use risk-sharing mechanisms and institutional reform to stabilise food supply and reduce vulnerability to external shocks.
